Text 2: where do people put their savings in the United States?

Most of the nation's personal savings are held by the commercial banks, different types of savings institutions, and credit unions. The deposits held by these institutions are insured by agencies of the federal government. Savings institutions offer one or more of the following kinds of accounts:

• Passbook and statement savings accounts. The safety of your money and high liquidity are the most important advantages of these accounts. Minimum balance requirements are usually quite low, and your savings can be withdrawn at any time The disadvantage of passbook and statement savings accounts, however, is that they pay relatively low interest rates.

• NOW (Negotiable Order of Withdrawal) accounts. NOW accounts pay interest and allow the depositor to write checks. NOW accounts generally offer a slightly lower rate of return than savings accounts.

* Money-market accounts. These insured accounts allow you to write a limited number of checks while participa­ting in the "money market" where banks and other businesses buy and sell short-term credit instruments, notes and other kinds of IOU's that come due in a year or less. The rate of return for money market accounts is usually higher than for passbook savings accounts.

* Certificates of deposit. Certificates of deposit, or CD's, pay the highest rates of interest offered by banks and savings institutions. They require the money to be left on deposit for a specified period of time that can run from a few weeks to five or more years. The money can be withdrawn early, if necessary, but not without a penalty.

* Credit-union accounts. Credit unions, associations of people with some thing in common, often serve people who have the same employer, work in the same industry, or belong to a particular church, labor union, or club. Credit unions offer insured savings plans similar to those offered by other savings institutions. In most instances, however, the rate of return offered by credit unions is higher than that of the other institutions.

* US savings bonds. US savings bonds can be purchased at most savings institutions. Guaranteed by the United States government, they are one of the safest investments one can make. Since 1986 the bonds pay no less than 6 percent interest when held for five years. After five years bonds earn a variable rate adjusted every six months.

* Money-market funds. Money market funds use the resources of their investors to buy money-market certificates. Money-market funds generally pay a higher rate of return than savings and NOW accounts. Unlike other accounts at savings institutions, money-market fund accounts are not insured nor do they provide check-writing privileges.

Vocabulary:

savings institutions – сберегательные учреждения

passbook and statement savings accounts – сберкнижка и сберегательные счета
Negotiable Order of Withdrawal – текущий счет, приносящий доход

money-market accounts – счета денежного рынка

short-term credit instruments – документы краткосрочного кредита

rate of return – ставка дохода

come due – зд. подлежат оплате

certificates of deposit – свободные обращающиеся депозитивные сертификаты

penalty – штраф, пеня

credit-union accounts – счета общества взаимного кредита

US savings bonds – сберегательные облигации США

money-market funds – фонды денежного рынка

Дата добавления: 2015-08-20